UWEA is pleased to announce the conclusion of a new contract between two of the association’s member companies – Elementum Energy and CEMARK – aimed at stabilising electricity prices. On 1 June 2025, a one-year corporate power purchase agreement (cPPA) entered into force between the Dnistrovska wind farm (managed by Elementum Energy) and one of the cement plants of the CEMARK group.
The concluded agreement is based on the CfD mechanism (Contract for Difference), under which the parties agreed on a “price corridor” — a range within which market fluctuations do not trigger additional settlements between the producer and the consumer. If the upper limit is exceeded, the producer compensates the consumer for the difference, and if the price falls below the corridor, the consumer compensates the producer for the difference.
Settlements are based on the indicative price benchmark defined in the agreement and an agreed volume of electricity. At the same time, no physical delivery of electricity takes place, and all transactions are carried out on the open market.
“Instruments for stabilising electricity prices in Ukraine are not yet very popular, but their introduction is critically important for long-term business planning. CfD contracts, also known as financial corporate PPAs, have good potential, as they provide protection against price fluctuations and create predictable conditions for producers and consumers. In addition, such pilot projects allow end consumers and renewables producers to work directly in the light of European integration changes and with care for the environment”, — comments the Commercial Director of Elementum Energy, Roman Volosheniuk.
“Given the large volumes of consumption and market prices, electricity costs are one of the key components in the cost of cement and require constant attention and the introduction of new instruments for influencing price formation. ‘As of yesterday’, this was the permanent benchmarking of offers on the electricity supply market in order to maintain commercial prices on the best market terms, and the development and introduction of atypical commercial products, such as, for example, a fixed-price package.
‘Today’, this toolkit is being supplemented by the CfD and PPA mechanisms, which, in addition to the tasks of hedging price risks, are important components of the development of renewable energy in Ukraine. ‘Tomorrow’ we have a plan to introduce our own electricity generation instruments: both ‘green’ and balancing”, — comments CEMARK’s energy resources procurement manager, Maryna Boiaryntseva.
This is already the second such contract for Elementum Energy, and it is another important step in the development of financial instruments that contribute to long-term stability and transparency in the renewables sector. CfD mechanisms, which are already widely used in the EU, are only beginning to be integrated into the Ukrainian market and have significant potential to support both producers and large consumers of “green” energy.
UWEA sincerely congratulates both companies on the signing of this important agreement. This is an example of practical interaction between renewable energy producers and a responsible industrial consumer that corresponds to modern challenges and European approaches to sustainable development. UWEA will continue to support instruments that contribute to the development of a competitive and transparent energy market in Ukraine.
For reference
Elementum Energy is the largest producer in the field of renewable energy in Ukraine. The company manages a portfolio of wind and solar power plants with a total capacity of 636 MW and continues to develop new projects in the field of wind energy and energy storage systems. The Dnistrovska wind farm (installed capacity 100 MW) is located in the Odesa region. It was commissioned in phases in 2021 and 2023, with 21 wind turbines built. The estimated saving of carbon dioxide (CO2) emissions into the atmosphere amounts to 259,583 tonnes per year.
CEMARK is a group of companies that unites PrJSC Mykolaivcement in the Lviv region, JSC Podilsky Cement in Kamianets-Podilskyi and LLC Cement in the Odesa region, and is also part of the CRH group — a leading producer of building materials in the world.
